A product is manufactured by passing through three processes: A, B and C. In process C a by-product is also produced which is then transferred to process D where it is completed. For the first week in October, actual data included:

You are required to prepare:

(a) Accounts for Process A, B, C and D:

(b) Abnormal loss account and abnormal gain account.

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Process Process Process Process A B C D Normal loss of input 5% 10% 5% 10% Scrap value (per unit) 1.50 2.00 4.00 2.00 Estimated sales value of by-product (per unit) 8.00 Output (units) 5,760 5,100 4,370 Output of by-product (units) 510 450 Direct materials (6000 units) 12,000 | Direct materials added in process 5,000 9,000 4,000 220 Direct wages 4,000 6,000 2,000 200 Direct expenses 800 1,680 2,260 151 Budgeted production overhead for the week is Budgeted direct wages for the week are 30,500 12,200